Topps Tiles PLC (LSE:TPT) backed full-year guidance after reporting sales growth remains strong.
“We remain confident that adjusted profit before tax in the second half will be materially higher than the first half, and that we will perform in line with market expectations for the year as a whole,” the company said in a statement.
In a trading update for the 39 weeks to 1 July 2023, the retailer said sales remained strong in the financial third quarter, rising 4.4% year-on-year.
Sales at Topps Tiles remained robust, growing 2.5% on a like-for-like basis with gross margin improving as inflationary pressures eased and shipping costs fell.
The sales performance within the Online Pure Play brands remained “excellent”, with sales growth in excess of 60% in the third quarter, led by Pro Tiler Tools.
Topps Tiles took action to improve performance in its commercial business, Parkside, and has taken a £0.4mln restructuring charge.
But it believes the unit is well positioned for future growth.